In 2025, a surge in global gold prices has turned the spotlight on West Africa, where governments in the Sahel region are leveraging the boom to tap into a lucrative yet chaotic gold market. How 'blood gold' is driving conflict underscores a complex web of military interests, civilian suffering, and international exploitation.
Countries like Burkina Faso, Mali, and Niger are cashing in on this elevated demand for gold—collectively producing around 230 tonnes a year, worth approximately $15 billion. Much of this wealth, however, does not trickle down to the local communities that mine it. Beverly Ochieng of Control Risks notes that military juntas in these nations are relying on gold revenue to finance counterinsurgency efforts against jihadist groups, exacerbating an already dire situation.
Local leaders are vocally promoting the supposed economic benefits of gold production. For instance, Mali's junta recently laid the groundwork for a gold refinery developed in partnership with a Russian firm, which promises job creation. Despite this, such developments raise skepticism as much of the revenue seems to favor militias like the Wagner Group, often paid in gold or mining rights, while residents remain mired in poverty.
The issue grows more troubling as armed factions vie for control over informal and unregulated artisanal gold mining. Such mining, often conducted without government oversight, has led to competition between jihadists and state forces, enriching both sides and feeding the violence that plagues the region. Reports suggest that militants, including those linked to al-Qaeda, have benefited from gold revenues amid a backdrop of increasing civilian brutality.
The recent spike in gold prices has not translated to higher earnings for those laboring in artisanal mines. Workers describe receiving meager pay that has not kept pace with soaring global prices, indicating that the mine owners—a precarious and sometimes dangerous class—are reaping the majority of the profits.
Unlike the well-documented history of blood diamonds, efforts to curb blood gold have seen limited success. International frameworks like the Kimberley Process, which targeted diamond mining, are ineffective for gold, as tracing its origin is virtually impossible. The gold sent from informal operations in West Africa often ends up in global markets, including the UK, with little oversight regarding its origins. The current state of ethical mining remains dismal, with many local communities caught in a cycle of exploitation.
For now, with Sahelian governments relying heavily on gold amidst worsening jihadist violence and community unrest, it seems that the detrimental cycle of blood gold is likely to continue unabated, posing profound ethical dilemmas for international consumers and investors.
Countries like Burkina Faso, Mali, and Niger are cashing in on this elevated demand for gold—collectively producing around 230 tonnes a year, worth approximately $15 billion. Much of this wealth, however, does not trickle down to the local communities that mine it. Beverly Ochieng of Control Risks notes that military juntas in these nations are relying on gold revenue to finance counterinsurgency efforts against jihadist groups, exacerbating an already dire situation.
Local leaders are vocally promoting the supposed economic benefits of gold production. For instance, Mali's junta recently laid the groundwork for a gold refinery developed in partnership with a Russian firm, which promises job creation. Despite this, such developments raise skepticism as much of the revenue seems to favor militias like the Wagner Group, often paid in gold or mining rights, while residents remain mired in poverty.
The issue grows more troubling as armed factions vie for control over informal and unregulated artisanal gold mining. Such mining, often conducted without government oversight, has led to competition between jihadists and state forces, enriching both sides and feeding the violence that plagues the region. Reports suggest that militants, including those linked to al-Qaeda, have benefited from gold revenues amid a backdrop of increasing civilian brutality.
The recent spike in gold prices has not translated to higher earnings for those laboring in artisanal mines. Workers describe receiving meager pay that has not kept pace with soaring global prices, indicating that the mine owners—a precarious and sometimes dangerous class—are reaping the majority of the profits.
Unlike the well-documented history of blood diamonds, efforts to curb blood gold have seen limited success. International frameworks like the Kimberley Process, which targeted diamond mining, are ineffective for gold, as tracing its origin is virtually impossible. The gold sent from informal operations in West Africa often ends up in global markets, including the UK, with little oversight regarding its origins. The current state of ethical mining remains dismal, with many local communities caught in a cycle of exploitation.
For now, with Sahelian governments relying heavily on gold amidst worsening jihadist violence and community unrest, it seems that the detrimental cycle of blood gold is likely to continue unabated, posing profound ethical dilemmas for international consumers and investors.
